<p>I got offered a Parent PLUS loan as part of my package, b/c i convereted my workstudy into loans as i plan on having an off campus job and would need the additional loan money to make ends meet. </p>
<p>They converted my workstudy into a PLUS loan, however my mom is on SSI and she oviously doesnt work,... i was wondering if she wasgoing to get approved or denied for the pLUS loan, i am hoping for denial so that i can take out the unsubsidized loans, b/c i know it will be impossible for her to pay it off. </p>
<p>Any expereinced with SSI and pLUS?</p>
<p>I haven't experience with the Plus loans because I am soo old. </p>
<p>However, at one time I was thinking of asking an older family member to co sign a loan.</p>
<p>This family member is plainly on SSI and I could not bring myself to ask. </p>
<p>The more I thought about it, the more I thought it would be unfair because of how the income of those on SSI is soo limited. I just could not do it, because I was scared that if I became ill that it would just be unfair.</p>
<p>So, I do not think it really prudent to ask anyone on SSI to apply for the Parent Plus loan nor any loan. However, if you have to, then check out what the AARP says about that. The AARP might be an organisation to look into because they are for retired ladies and gentlemen. My great uncle got a piece of "junk mail" from the AARP about student loans. </p>
<p>Good luck. I am not trying to be negative, I am just trying to be fair. Because, SSI is (for the most part) fixed income. If you truly want to go the Parent Plus Loans route, you might need to figure out a way to take over those loans later on down the line. I figure that since you are speaking of your own mommy, that you folks could do a handshake deal.</p>
<p>My mom is diasbled thats why she is on SSI and for the PLUS loans repayment starts in 60 days, there is no way i will be able to pay that off, and there is no way she will be able to pay that off, so basiclly the plus loan is out of the question, i just wanted to see if anyone had any experiences beacause i really need to her to apply for it and then get denied, because once she is denied i can get the amount in my own name.</p>
<p>Well she will more than likely get denied with no problem because she is on a fixed income. I did not want to state that originally because I thought it would be mean and I would just PM you later on when more folks answered your thread.</p>
<p>If your mommy and you are all cool, the go for it. Just remember that goes on the credit report of your mommy.</p>
<p>Apply through that Sallie Mae and y'all will get denied quickly! Then you can "swap" things ethically. Look for one that is really keen on the income level of the parent. I mean, I have heard Sallie Mae is a mean old compnay, but I am not a parent. Maybe some folks will post about tight fisted mean loan companies to help you?!</p>
<p>You might want to ask her about her debt to income ratio also. Because if her debt to income ratio is high (like, to a lenders eyes) then that will "help" her get denied also. </p>
<p>I am very sorry that your mommy is ill. Truly, I hate to hear that from anyone, you know. Bless you.</p>
<p>Actually, none of the PLUS lenders are allowed to look at debt to income ratio. The Federal law on this is clear, only bad credit is a deterrent to getting approved.</p>
<p>What I would do is have your mom apply with a "pre-screening" application process. If she is approved, you can then decide whether you want to take the loan or not. If she is declined, you can then qualify for additional unsubsidized Stafford Loan ($4000 per year Fresh and Soph, and $5000 per year Junior and Senior).</p>
<p>If she is approved, there are lenders who will allow payments to be deferred while you are in school, so you could take these on as your payments after graduation, but be careful... You do not want to get yourself into a situation where you are going to have problems paying back your loans later.</p>
<p>I am sorry barkowitz. But, they do not even look at the income levels then, either? Like, if someone made, for example, $600.00 SSI, they could apply for and obtain a big plus loan?</p>
<p>See, I look at a web site, like this one...</p>
<p><a href="http://studentaid.ed.gov/PORTALSWebApp/students/english/parentloans.jsp?tab=funding%5B/url%5D">http://studentaid.ed.gov/PORTALSWebApp/students/english/parentloans.jsp?tab=funding</a></p>
<p>and I wonder. </p>
<p>Barkowitz, if you were in Malishka31's shoes what would you (ethically, obviously) do? I just do not understand how anyone on SSI would come close to obtaining a Parent Plus loan. It does not seem a morally prudent move for any lender to make.</p>
<p>From the Department of Education's Student Financial Aid Handbook (reference is <a href="http://ifap.ed.gov/sfahandbooks/attachments/0607Vol4Ch1.pdf):%5B/url%5D">http://ifap.ed.gov/sfahandbooks/attachments/0607Vol4Ch1.pdf):</a></p>
<p>"To borrow a PLUS loan, the parent applicant must not have
adverse credit. Adverse credit is defined in the regulations as the
applicant being 90 days or more delinquent on a debt or having
been subject in the last five years to a default determination,
bankruptcy discharge, foreclosure, repossession, tax lien, wage
garnishment, or write-off of an FSA debt. The absence of any credit
history is not considered adverse credit. FFEL lenders may establish
more restrictive credit standards for determining adverse credit."</p>
<p>Most lenders have not established more strict guidelines, and why should they? The loans are guaranteed by the Federal government (so they are paid back if a borrower defaults) and the lender doesn't want to lose market share. Where parents have problems qualifying it is usually due to a credit history problem.</p>
<p>All of that is not to say that I don't have sympathy for Malishka! I do, but if it is true that the college has no more aid to give, and the bill has to be paid, then tough choices are in order. That's why I suggested starting with doing a pre-check on credit and then moving on to making the borrowing decision next.</p>
<p>its not like she cant take the loan , its just stupid, that mean that instead of giving me an extra 100-200 a month, its going to my loan, i dont win anything this way...... </p>
<p>She has NO job , how is that not adverse in terms of paying the loan back. I dont think they assume people to borrow who have no job.</p>
<p>I agree that it seems strange, but I'm just reporting the facts... PLUS lenders are not required to look at debt to income levels, job status, or anything other than what I quoted above...</p>
<p>Malishka, I still think you should talk to the college and see what other options you have (student loans, student work, etc) or do the pre-screen just to see...</p>
<p>the parent loan is only 2500. or they will offer me workstudy, but thats not going to work, i cant have two jobs at the same time.</p>
<p>its like 13k grants and 5500student stafford and then 900 Perkins</p>
<p>Malishka31 - when you were applying what were your expectations on how the COA would be covered? I don't have any experience with a PLUS loan for someone on SSI but my guess would be that given the situation you have described your mother is in no position to take out a loan for your education. I think your best course of action is to talk to the FA office at school and see what you can come up with.</p>
<p>barkowitz: I do not, still, understand how someone on a fixed income could even qualify for a Parent Plus loan. </p>
<p>For example...</p>
<p>if you make $600.00 SSI, and qualify for a Parent Plus loan...
when the child graduates, the parent would automatically have a portion of their SSI taken away each month, in a fashion.
Who would let someone with a fixed income have the expenses related to their mode of living cut soo harshly because of a student loan? </p>
<p>I think that is very harsh. Because if one earns $600.00 a month SSI, then when they have to pay the Parent Plus loan, their income could automatically be cut by quite a bit for the life of the loan.</p>
<p>Therefore, I think that it would not be morally prudent for those on a fixed income to qualify for the Parent Plus loan. </p>
<p>I cannot help but wonder about the ethical repercussions of such things because I have a double major in Theology and Lit. barkowitz, I hope you know that I most definitely mean no disrespect to you whatsoever. </p>
<p>MagsMom makes the most sense, in my humble opinion, because there would have to be an alternative which is fair minded and just. However, I would surely ask the HEAD of the Financial Aid department (but that is just me, eh?)</p>
<p>Again, I need to stress I don't necessarily agree with the law, I am just reporting it (...translation, don't shoot the messenger...).</p>
<p>As the Director of Financial Aid at MIT, which I am, I often see things in the Federal programs that may not make "sense" but, here we are.</p>
<p>I agree with you that having a parent on SSI take a PLUS loan is asking for trouble, which is why at my institution we wouldn't do it. But (let me stress this again), the opening question wasn't whether having a parent on SSI borrow is just or moral, but rather would they qualify for a PLUS. And the answer is, assuming no credit problems, a resounding "yes".</p>
<p>barkowitz, once again, I totally mean no disrespect to you at all. </p>
<p>What do you figure Malishka31 could do, then?</p>
<p>I asked the financial aid office, they said she must get denied b4 they will give me unsubsidized funding. </p>
<p>My mom said she has no problem taking out the loan for me, but she has no income and she just said its stupid that they even offered it to her.
SHe gets about 730 a month, .......... how far do you guys think 730 a month goes??????? i know no one takes that into account in the federal system probably but thats just moronic.</p>
<p>My mom has good credit, it will be highly unlikely that she would get denied based on credit score alone........ but , even credit cards ask, what is your income, how do u plan on repyaing this lone. I hope she gets denied.</p>
<p>So, my advice is to again ask if there is any other money available to you in the office, Malishka, whether that is Perkins, Work Study, State Loan, etc where you could be the borrower / recipient. If not, then I go back to the earlier post where your mom borrows but you find a lender who will allow deferment of paymets while you are in school.</p>
<p>Oh, and merlinjones, no disrespect taken... :)</p>
<p>if your mother is an aarp member, you might want to check out their loan to learn program. i've been told they have decent rates.</p>
<p>I was reading the ucla guide to PLUS loans and it says if you go on permanent disability your loan will be forgiven in full, my mom is on permanent disability due to cancer, thats why she gets her SSI/SSA.</p>
<p>I applied her online, through opennet-salliemae, and her credit is approved, oviously, but on the next page they ask for work infromatoin, and i put SSI/Disability, i highly doubt they would approve her when she is on permanent disability, i know they do employment verficiation, that would be a very risky approval for them, b/c she could just turn around and fine for loan forgiveness due to her permanent disabilty.now i am just waiting for the rejection/approval ...</p>